HSBC issues Singapore's first EFS-green loan worth $6 million to Durapower

HSBC said the Enterprise Financing Scheme-Green has enabled the bank to extend finance quickly to Durapower. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - HSBC Singapore extended a $6 million green trade loan to Singapore technology company Durapower Group, becoming the first participating financial institution to issue financing via the Enterprise Financing Scheme-Green (EFS-Green Scheme).

HSBC said on Wednesday (Oct 27) that the loan will enable Durapower to accelerate the development and distribution of its high-tech energy storage solutions using lithium-ion batteries for the Tuas Mega Port's automated guided vehicle fleet.

The fleet is a key element in creating a greener port through sustainable, smart and clean energy solutions, HSBC noted.

Head of commercial banking at HSBC Singapore Regina Lee said that the EFS-Green Scheme has enabled the bank to extend finance quickly to Durapower.

This has accelerated the roll-out of "meaningful technology" that supports Singapore's ambition to create a greener port, she said.

"We hope that this will act as a catalyst to mobilising more enterprises in the journey towards a low-carbon economy. The EFS-Green Scheme draws on HSBC's expertise in providing sustainable financing and investments to support the bank's customers to thrive through transition and unlock next-generation climate solutions," said Ms Lee.

She added that green loans play "an essential role" in scaling up financing investments that provide environmental and social benefits, both in Singapore and globally.

Durapower chief executive Kelvin Lim said: "We hope that through this partnership with HSBC, we are able to rapidly engage the wider economy and contribute to the world's aims of reducing its carbon footprint."

The EFS-Green Scheme was launched on Oct 3 by Enterprise Singapore, with aims to provide easier access to finance for corporates that are enablers of the transition to a greener economy.

HSBC said the scheme provides for risk-sharing of 70 per cent to support lending by partner financial institutions to project developers, system integrators, and technology and solution enablers in clean energy, circular economy, green infrastructure and clean transportation sectors.

The scheme, which is an enhancement of the existing Enterprise Financing Scheme, provides financing support for Singapore businesses to develop enabling technologies and solutions to reduce waste, resource use and greenhouse gas emissions, so as to "seize the growing opportunities" in the green economy, added HSBC.

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